Administration's Plans to Alter FAA Financing

Bush administration wants to make several changes to the current funding structure for the Federal Aviation Administration


To help pay for the transition from a radar-based air traffic control system to one that is based on Global Positioning System satellites, the Bush administration wants to make several changes to the current funding structure for the Federal Aviation Administration:

- 7.5 percent tax on ticket price of domestic airline tickets.

- $3.30 per-passenger tax on domestic passenger flight segment.

- 7.5 percent tax on award value of frequent flier awards.

- $7.30 per-passenger fee for passenger service between the continental United States and Alaska or Hawaii .

- 6.25 percent tax on shipping price for transportation of domestic cargo or mail.

- 4.3 cents per-gallon tax on domestic commercial aviation fuel: increase to 13.6 cents.

- 19.3 cents per-gallon tax on domestic general aviation gasoline: increase to 70 cents.

- 21.8 cents per-gallon tax on domestic general aviation jet fuel: increase to 70 cents.

- $14.50 per-passenger tax on international passenger arrivals and departures: decrease to $6.39.

- User fee for commercial aircraft based on distance traveled or other factors.

- Congestion fee for landings and takeoffs by all aircraft at congested large-hub airports based on time of day and day of week.

SOURCE: Government Accountability Office

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